Best Way To Obtain Cash For Rental Repairs

[Micah Roy]

The time has come for some exterior repairs on my rental property. We have owned the property since 2006. Lived in it for 8 years and have rented it out for the last 7. Interior is up to par with the market minus some minor things that we will be doing. My concern is the exterior. Front porch needs replaced (quoted $11k-$14k). Siding is the old LP and at least two side of the house will need to be redone then repainted. I’m waiting on a few final quotes but I’m estimating we’ll be in the range of $25k-$35k when all done. My question is this: What is the best way to obtain this money to make the repairs? Here are my options. If I’m missing something feel free to add.

Private money (potentially family members).

Loan.

Refi.

Credit card.

I’m leaning towards a refi but I’m balking cause we bought the house $150k at 4.25%, owe about 90k. Home is valued around $340k (same models going for this in the neighborhood). Mortgage payment (principal, interest, insurance and taxes) is $1,050 and the rent payment is $1900. Would love to have the house payed off and this property funds one of the next ones but if I refi I start over on the interest and my rates would be higher. 

[Micheal Briscoe]

Would be a good idea to budget ahead of time and set some funds back.  

In your situation, I would look into a HELOC. Either on your primary or on your rental. Rental HELOCs are hard to come by, but they are out there. I can almost guarantee they'll have better terms and structure vs the options you listed. Especially over a refi at todays rates.